Monte Services, Inc. is trying to establish the standard labor cost of a typical oil change. The following data have been collected from time and motion studies conducted over the past month.

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Monte Services, Inc. is trying to establish the standard labor cost of a typical oil change. The following data have been collected from time and motion studies conducted over the past month.

Actual time spent on the oil change 3.0 hour
Hourly wage rate $14
Payroll taxes 15% of wage rate
Setup and downtime 9% of actual labor time
Cleanup and rest periods 28% of actual labor time
Fringe benefits 24% of wage rate

 

Determine the standard direct labor hours per oil change.

Determine the standard direct labor hourly rate.

Determine the standard direct labor cost per oil change

If an oil change took 3.60 hours at the standard hourly rate, what was the direct labor quantity variance?

    • 7 years ago
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